Hargreaves Services flags strong half-year

(Sharecast News) - Hargreaves Services said in an update on Thursday that it expects to report another strong set of interim results, with growth in both revenue and profit before tax for the six months ended 30 November.

The AIM-traded firm's board said revenue was set to improve in the services division and at Hargreaves Land, while profit before tax was expected to rise across all three segments compared with the same period last year.

It added that it remained confident of delivering full-year results in line with market expectations, which the company cited as revenue of �270.9m, pre-tax profit of �24.2m and earnings per share of 53.3p.

The services business continued to post steady revenue growth, supported by expanding activity on major infrastructure projects.

Hargreaves said the unit delivered strong performance across its target markets of connectivity, clean energy and environmental services, benefiting from a resilient pipeline and a growing contract base with blue-chip clients.

It said Hargreaves Land meanwhile recorded a strong first half, including the sale of the first tranche of the group's renewable energy land assets, a step it described as significant in its strategy to create and realise value from those holdings.

The division also completed a material sale at its Blindwells development near Edinburgh, which improved its expected first-half result versus the prior year.

Its joint venture, HRMS, traded steadily, while its DK Recycling business performed satisfactorily despite a challenging economic backdrop.

Hargreaves reported cash of �37.3m as at 30 November, up from �15.7m a year earlier, reflecting renewable energy asset sales, land transactions and continued positive trading in Services.

Leasing debt rose to �43.2m from �34.6m, supporting the growth of the services division, and the group remains free of bank debt.

At 1540 GMT, shares in Hargreaves Services were down 0.25% at 662.32p.

Reporting by Josh White for Sharecast.com.